The Securities and Exchange Commission (SEC) has provided clarification on its approach to regulating digital assets. In prepared remarks for a speech at the Practising Law Institute, SEC Chair Paul Atkins stated that the agency's interpretation is not a definitive answer, but rather a starting point for further regulation.
Atkins emphasized that the SEC will focus on its interpretation of federal securities laws as they apply to crypto, with an emphasis on clarifying which digital assets are subject to these laws. He noted that most cryptocurrencies are likely not securities under federal law, with traditional securities tokenized into digital assets being the only class remaining subject to the agency's purview.
The SEC's interpretation has significant implications for the regulation and oversight of digital assets in the US. A market structure bill working its way through Congress may also give the Commodity Futures Trading Commission (CFTC) more authority in this area, potentially leading to a more comprehensive regulatory framework for digital assets.